Running Like a Machine
Carmine Marinaro takes systems seriously. “We even have a system for making coffee,” says Marinaro, founder of Corporate Information Systems (CIS), a high-tech executive-search firm in Rutherford, N.J. Marinaro launched CIS in 1987, and though business was good, revenues plateaued at the $1 million mark by the mid-90′s. We were doing well, but I thought we could do better,” says Marinaro. His key to growth? Embracing a systems mindset:
What really turned me around was reading Michael Gerber’s book, “The E-Myth.” I had read other business books, but this one hit home.
Like most entrepreneurs, when I first started my company, I relied on my technical expertise and what I had learned from working at other places. But after a few years of building the foundation, I wanted some sort of infrastructure that would help me grow CIS.
Our first move was to develop a system for training employees. The program is split into two components: candidate development and client development. New recruiters spend six days in a company classroom, then apply those lessons by working with a mentor in an incubator setting for the next month. Once they’ve mastered this side of the business, they go back into the classroom for client development and repeat the incubator experience.
This training program not only makes it much easier to bring new people on board, it also provides our clients with a consistent recruiting experience-everyone at CIS is conducting business the same way.
Some of our other systems include:
OPERATIONS These procedures encompass everything from office hours to administrative reports. If reports aren’t filled out in a consistent manner, the resulting data won’t be meaningful.
HUMAN RESOURCES This year we developed a hiring system to make sure that each job applicant was interviewed in the same way. We’ve also created a “position contract” that spells out everything the new hire is accountable for – from the number of weekly search assignments they conduct to the level of revenues we expect them to generate. It goes far beyond a job description. We have them review this contract before they join; that way, there are no surprises when they show up on the job.
MANAGEMENT Right now we’re working on our management procedures. One new system we’ve created is a weekly employee-development meeting where supervisors sit down with account executives to discuss specific goals or strategy.
I have to admit that this is a lot of work. We started in 1995, and our systems are still a work in progress. One of the biggest challenges is to document everything in writing. If it’s not in writing, you might as well not bother. Documenting allows you to break down a process, analyze it and then teach it step-by-step. It’s not a system unless it’s documented.
One good thing: I don’t have to do this by myself anymore. Employees have input into improving the systems, which gives them an opportunity to help build the company.
Since we’ve embraced a systems mindset, revenues have tripled to more than $3 million. Without our infrastructure, my business wouldn’t be able to grow; I would be forced to remain a technician and do it all myself. Systems give me the freedom to be a visionary, to try other ventures.
It also gives me time to relax: Last year I took the month of July off and went to the beach. I wasn’t worried that my business would fall apart. People here know what to do; they’re thinking like owners, which keeps the company running like a machine.
